---
title: "Tech giants \"AI efficiency\" wave spreads: IBM follows up with thousands of layoffs, accelerating the shift to software business"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/264334138.md"
description: "IBM announced that it will lay off thousands of employees this quarter, a move that will affect less than 1% of its global workforce. This layoff is part of the company's transition to a high-profit software business aimed at improving operational efficiency. Recently, several technology companies have also been conducting layoffs. IBM CEO Arvind Krishna stated that the application of AI tools will help drive the company's growth. IBM's software business revenue surged by 10%, boosting its stock price. It is expected that by the end of 2024, IBM's global workforce will be approximately 270,000 people"
datetime: "2025-11-05T03:20:06.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/264334138.md)
  - [en](https://longbridge.com/en/news/264334138.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/264334138.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/264334138.md) | [繁體中文](https://longbridge.com/zh-HK/news/264334138.md)


# Tech giants "AI efficiency" wave spreads: IBM follows up with thousands of layoffs, accelerating the shift to software business

According to Zhitong Finance APP, IBM (IBM.US) announced on Tuesday that it will initiate a layoff plan this quarter, expected to affect thousands of employees. This adjustment comes as the company shifts its strategic focus towards high-profit software businesses, with Wall Street closely monitoring whether IBM can seize the opportunities presented by the demand for artificial intelligence (AI)-related cloud services.

Recently, several technology companies have been pushing forward with downsizing plans. To enhance operational efficiency, corporate executives are achieving efficiency goals by increasing the application of AI tools. In October, Amazon (AMZN.US) announced the layoff of 14,000 corporate employees, and Meta (META.US) also stated that its AI department would streamline 600 employees.

"We will regularly review the employee structure from this strategic perspective and make personnel adjustments as necessary," an IBM spokesperson said. "In the fourth quarter of this year, we will implement a personnel adjustment measure that will affect less than 1% of the total global workforce."

Thanks to acquisitions of departments like Red Hat and HashiCorp, IBM's software business has gained strong momentum, attracting significant interest from investors and driving the company's stock price up this year. IBM CEO Arvind Krishna is focused on making the software division the company's largest business segment, especially in the context of the consulting division facing ongoing pressure due to clients' concerns about the macroeconomic environment.

In the financial report released on October 22, IBM delivered better-than-expected results—software business revenue surged by 10%, becoming the main driver, and overall performance met market expectations.

This comprehensive provider of hardware, software, and services optimized part of its marketing and communications teams in March 2024. Krishna revealed in an interview in May that AI agents have taken over the job functions of about 200 human resources employees, allowing the company to expand its sales team and software developers.

As of the end of 2024, IBM's total global workforce is approximately 270,000. The spokesperson disclosed that some employees in the United States may be affected by this layoff, but the overall employment numbers in the U.S. are expected to remain stable compared to the same period last year

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